MUMBAI (Reuters) - India needs an efficient bankruptcy law in the corporate bond market, Reserve Bank of India Executive Director R. Gandhi said on Friday.
There is a need to encourage public issuance of bonds, he said, adding that the private placement of bonds should be restricted.
Corporate bond issuances have sharply declined post the central bank's measures since mid-July to curb volatility in the forex market by making rupee funds expensive, driving firms to bank loans.
Tax free bond sales, which are targeted at retail buyers, have taken centrestage with Rural Electrification Corp Ltd (REC) kicking off a sale to raise up to 35 billion rupees on Friday. (Reporting by Neha Dasgupta; Editing by Anupama Dwivedi)